Inwood N. Homeowners' Assoc. v. Harris

In Inwood N. Homeowners' Ass'n v. Harris, 736 S.W.2d 632, 635 (Tex. 1987), a homeowners' association filed a Declaration of Covenants governing and restricting the use of the members' property. The declaration provided that all the lots within the subdivision were impressed with certain covenants and restrictions and that such would run with the land and be binding on all parties acquiring rights to any of the property therein. The Supreme Court of Texas held that the "Declaration of Covenants evidences the intent of the original parties that the covenant run with the land, and the covenant specifically binds the parties, their successors and assigns." 736 S.W.2d at 635. The Court acknowledged the general rule that a homestead is protected against the debts of those who live in the homestead. Harris, 736 S.W.2d at 634. Foreclosure of a person's homestead may only be sought for certain types of debt specifically delineated in the constitution. TEX. CONST. art. XVI, 50. However, the Court in Harris went on to hold that, "when the property has not become a homestead at the execution of the . . . lien, the homestead protections have no application even if the property later becomes a homestead." Harris, 736 S.W.2d at 635. Consequently, "if the lien attached prior to the claimed homestead right and the lien is an obligation that runs with the land, there would be a right to foreclose." Id. In sum, a declaration of covenants and restrictions for the subdivision, which was on file in the county's real property records, provided that any person receiving a deed for a lot in the subdivision was to pay an annual assessment and any special assessments for capital improvements. 736 S.W.2d at 633. The court held that the covenant to pay maintenance assessments for the purpose of repairing and improving the common areas and recreational facilities of the subdivision met all of the requirements for a covenant running with the land because: (1) it "touched and concerned" the land, (2) the declaration of covenants evidenced the intent of the original parties that the covenant run with the land, (3) the covenant specifically bound the parties and their successors and assigns, and (4) because the property was conveyed in a succession of fee simple estates, the requirement of privity was met. Id. at 635. In Inwood North Homeowner's Association, after holding that a fee assessment was a covenant running with the land, this Court further held that the restrictions contained "valid contractual liens which run with the land," and that the homeowners took the property subject to the homeowners' associations's right to foreclose for delinquent assessments. 736 S.W.2d at 635-36. The Court held that this right to foreclose was superior to the landowner's homestead rights because it pre-existed the landowner's purchase of the property. Id.